How To Find Best Supply & Demand Zones

Added: 2026-05-16

[00:00:00]Hey guys, it's Dalman and welcome back to the channel. In this one, I'm going to be taking you through my exact system on how I find the most probable zones in the market that can be repeated over and over and over again using a systematic set of rules. Now, how exactly do we actually get started with this? Well, it comes down to the basic understanding that supply and demand has to link up with market structure. There is just simply no way around that. And throughout this entire video, I'm going to take you through the highest to the lowest risk possibilities zones and then how we can actually implement that in the real life market. So, let's get straight into it. Now, when it comes to supply and demand, we obviously know demand is going to be an area that we buy off from. Supply is going to be an area that we sell from. But, these are not all the same in value. Why does this one carry much higher risk compared to something like this supply zone over here? There's a reason behind it. And it's all about how price interacts with structure and with certain zones. So, let's take it down. From the very beginning, what is our high risk zone?

[00:01:01]Well, this is in this scenario, it's going to be against the primary trend.

[00:01:06]First thing we need to understand is where price is actually moving. As you can see over here, we clearly have a high up here, a low. Eventually, price breaks up further. This is another continuous low. Again, price continues up all the way towards the upside.

[00:01:21]What this essentially means is if every single primary structural high, we are naturally going to be having a level of supply around this zone. But, the key thing here is understanding that because this is going against the primary direction, we are obviously going to be noting this as a lower quality entry.

[00:01:40]So, how do we look for our higher quality entries? Well, it's going to be something following our primary structure. Then, we've got our medium risk. Medium risk is somewhere very much in the middle where price is ranging.

[00:01:52]There is a clear direction, of course, which is why you can have different variations of the medium risk, but price ultimately is just stuck within this range and really reacting within this consolidation period. And we could expect this to continue up until price actually continues upwards or downwards.

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[00:02:27]Now, when it comes to multi time frame supply and demand, one of the key things that we've got to understand is of course our market structure direction, but also our imbalances. This is something that is very, very underrated. Most people only look to mark up their supply zones, their demand zones, and that is it. But one of the key things that we need to understand is contrary to most people's belief is within imbalances, there's a lot of volume there.

[00:02:53]Because prices moved very aggressively either towards the downside or towards the upside.

[00:02:59]Past these imbalances, past these areas of inefficiencies will always remain a supply or demand zone. Now, when that happens, when you have the imbalance plus the supply and demand linking up together, you know that this is going to be a place where price will most likely react. It doesn't necessarily mean that price is just simply going to bounce off straight away. It may start to consolidate and then react to the upside or potentially may even continue down and just continue in the intended direction. But one thing we must know and always keep it in the back of our heads is these areas are going to have a level of reaction. So, when we're taking our profit, we must take into consideration that our max ideal take profit is going to be here.

[00:03:44]Then we can have our aspirational take profit being all the way at the primary high and then even further based on previous structure.

[00:03:52]One little tip, if price is breaking all-time highs, nobody knows how far it can actually move. Everyone can make predictions, just like how they did with gold, but you're not going to be able to actually find that. Now, another thing we must know is this. Advanced supply and demand, when it's linked to market structure, one of the key things to understand is obviously our change of characters. Because when we're looking at that, there's different variations.

[00:04:15]We've got our lower time frame change of character, our medium time frame, our higher time frame. What I personally like to stick to is always going to be our medium time frame change of character. That is perhaps for me one of the most important decisions of am I going to enter? So, what I typically like to do when it comes to my trading is something like this. My lower time frame will be the 5-minute chart.

[00:04:39]My medium time frame will be something like the 30-minute chart, and my higher time frame will be something like the daily chart.

[00:04:45]There needs to be a bit of a gap between the medium and the higher time frame, cuz usually if this was the 30 and this was only the 1-hour, there's not going to be much of a difference in the chart.

[00:04:54]We need to see massive variation to get a bit more context. But, between here and here is very crucial. We execute on this time frame, we build context on here, and we build higher time frame context on the daily as well. Very, very simple. That's exactly what we need to get into. Now, I'm going to show you a few examples in real life of how you can apply this. I'm not going to nitpick anything, literally just showing you what the markets are giving me at the moment. So, just a quick little break.

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[00:06:31]Now, based on everything that we've spoken about so far, the advanced supply and demand with the market structure and everything, what are the areas that we would have continued to look for price to react to?

[00:06:42]So, what we would have seen is on our way downwards, as you can see over here.

[00:06:46]On our way downwards, this was the primary high. We would have noted this as one of the areas, potentially even this order block even up here. And potentially, let's just say this one over here.

[00:06:57]Now, it may take a few attempts, which is why we do not enter, and I repeat this again, we do not enter limits on every single point of interest. That is definitely the plan we don't want to go ahead with. Instead, what we wait for is looking for, number one, liquidity to sweep around particular areas. So, even this one over here would have been a nice little sweep. This zone was high probability, but what didn't happen was the advanced engulfing candle.

[00:07:25]That's exactly what we need to look for.

[00:07:26]Price needs to give us the pullback and the continuation towards the downside.

[00:07:31]That is not what we saw in this scenario. Instead, price continued all the way upwards, it broke down, gave us that pullback, and then further engulfing candles to continue price.

[00:07:41]Now, one of the things and one of the biggest takeaways you can actually take from this is this right here is going to be high quality. If you take a moment to look back at this, it follows the low risk setup. Primary structure is moving towards the downside in this scenario.

[00:07:55]Everything's moving down.

[00:07:57]We've had a pullback into an extreme zone, exactly that over here. We've had a sweep of this liquidity over here. So, where do we aim for in terms of our take profit? Well, our ultimate take profit is going to be all the way at the bottom of this range. However, we know that at any point price could reverse and actually break the structure towards the upside, causing a change of character.

[00:08:20]What we want to look for is where are the potential reversal points? We've got one reversal point here. Let's actually mark them out in blue.

[00:08:29]One reversal point over here.

[00:08:31]I guess we could argue even here. There was obviously a bit of manipulation at the start of the week.

[00:08:37]And these would be our main three zones.

[00:08:40]If we see prices continuously breaking down even further, so if we had entered over here, our stop loss just above this range with our take profit all the way at at the bottom, we've got to monitor these areas. So, it's the reactions that are key.

[00:08:57]A reaction that looks something like this where price taps into it, continues up, and then doesn't give us the advancing advanced golden confirmation, we are no longer concerned about that. We will essentially see price start to drop downwards. However, if we see something like this, that's where we can start to look for the buys and start slowing down on the sells, of course. That's not what we've got here at all. Price literally reacted a little bit, dropped straight down, reacted a little bit, dropped straight down. As you can see, every single time it touches the order block, it gives you a little bit a little bit of a pump towards the upside. And that's the the the significant thing that we're looking for. Now, where is it that we should always take our final take profit? Should be at the market structure low, then at that point we expect some sort of pullback. Now, the pullbacks are always going to happen. We just do not know how far they will go pull back to. So, what we going to do? We're going to mark up our high probability supply and demand. We've obviously got one area over here.

[00:10:00]We have one potential I mean, this one's been mitigated. This has been mitigated as well. This is also been mitigated.

[00:10:06]So, all of this price action over here is not the highest quality. Whereas, if you compare it to something like this, it's an open order block. That's why we got the reaction. Here we don't have that at all. We have no open order blocks. And what does price decide to do? Literally just breaks through. So, that is the one thing I want you to take a note of.

[00:10:25]Now, looking at current price action, where will price actually go ahead? Now, in my opinion and by the way, I'm sending out my daily analysis every single day. As you guys can see in my free Telegram, the link is going to be in the description down below. You will get access to everything plus the free 48-page PDF guide as um as well. It's somewhere in there.

[00:10:45]Um with that, how exactly do I do my analysis at this point? Well, I can see we've got a high time frame change of character upwards. Price has then had a medium time frame change of character down. So, price is conflicting on two sides.

[00:10:57]So, we look for zones. We do not and I repeat, we do not enter around 50% of the zone. The current medium time frame range is from here all the way up until this high over here.

[00:11:09]We do not want to enter at 50%. That's a big no-no. What we want to do instead is wait for more of a pullback to either of the extremes, which we've got here.

[00:11:20]And we've also got over here.

[00:11:23]Then from that point, we can start to monitor, okay, which one is the most probable? In my opinion, because the high time frame is starting to push upwards, I am expecting something like this. Where price touches, pushes up, pullback, engulfing, we enter here.

[00:11:39]Then from that point price continues, and we start to slow down at that extreme supply zone right at the top. So very, very simple, we have to align our high time frame with the medium time frame, with the low time frame, but ultimately it always comes down to this.

[00:11:52]So guys, if you have enjoyed this entire video, click the one on the top right-hand corner that you can see on screen right now, and it should really break down to you exactly my strategy tested live in front of your very eyes.

[00:12:04]Apart from that guys, like and subscribe, and I will see you all in the next video. Take care everyone.